Question
(a) What does parity in the Interest Parity (equation) relationship (IP), discussed in Chapter 17, mean? Answer in TEN words. (b) Under what condition in
(a) What does "parity" in the Interest Parity (equation) relationship (IP), discussed in Chapter 17, mean? Answer in TEN words.
(b) Under what condition in the financial market - perfect (obstacle free ) capital mobility or imperfect (restricted) capital mobility- will the IP hold true? Why? Answer in 60 WORDS.
NO EQUATION IS REQUIRED.
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Issues in Economics Today
Authors: Robert C. Guell
8th edition
1259746399, 1259746390, 978-1259746390
